“Overall house prices have remained remarkably stable in 2011 despite the difficult and deteriorating economic climate and the substantial pressure on households’ finances,” he said.

“In addition, activity has recently shown a few signs of strengthening a little. We expect the market to remain broadly unchanged in terms of both prices and sales.”

However, estate agent Marsh and Parsons believes the market is only being prevented from collapse by loose monetary policy.

“These figures point to a market that is far from healthy, said chief executive Peter Rollings. “It is only a shortage of stock and historically low mortgage rates that have prevented even greater price falls.”